PUNJAB NATIONAL BANK vs CHANDRAHASA on 30 October 2025

FINAL ORDER

1. The present application was filed before the Debts Recovery Tribunal-I, Bengaluru on 03.03.2014 as under section 19 of Recovery of Debts and Bankruptcy Act 1993 as

OA.No.585/2015 to recover a Sum of Rs.35,82,933/- (Rupees thirty five lakh eighty two thousand nine hundred thirty three only) with further interest thereon from the date of filing the Application till realization from the Defendant. Subsequently, the application was transferred from Debts Recovery Tribunal-I to this Tribunal and renumbered as TA.No.28/2017.

2. It is the case of the applicant that the defendant availed the Cash credit facilities of Rs.25,00,000/- (Rupees twenty five lakh only) from the applicant bank.

3. It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with mortgage deed, hypothecation agreement and sanction letter in favor of the applicant bank.

4. It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

5. In the above circumstances, the applicant approached this Tribunal by filing this TA seeking issuance of Recovery Certificate for the amount due in the account.

6. Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 22.10.2024.

7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the TA and also produced Exhibits A-1 to A-8 and got the same marked in evidence.

8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the TA in the light of documentary evidence and the proof affidavit.

9. The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the TA claim as against the defendant? ii) What order are to be passed?

Both these issues are gone into and decided together.

10. The case put forth by the applicant in the Application remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the TA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

11. Hence in view of the finding arrived herein above, this Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that TA is to be allowed.

12. Taking into consideration the facts that the credit facilities are availed by defendant for business purpose and also that TA claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the TA can be allowed with a reduced interest @12% p.a.(Simple).

13. In the result, TA.No.28/2017, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs.35,82,933/- (Rupees thirty five lakh eighty two thousand nine hundred thirty three only) with further interest @12% p.a. (Simple), from the date of filing TA till the realization, from the defendant personally after giving credit to all the amount recovered and received during the pendency of the TA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the TA be the schedule to the recovery certificate.

(ii) If the sale proceeds are not sufficient, the defendant personally and his other assets are liable to be proceeded against for the balance amount.

iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

v) Interim application pending, if any, stands disposed of in terms of this final order.

14. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993. [Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 30th day of October, 2025]. Sd/ (T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. M Sreenivasa, Chief Manager, of Applicant Bank. Exhibits on the part of the Applicant:

Exhibit Nos. Date Particulars of Documents A1 18.03.2011 Application A2 18.03.2011 Sanction letter A3 20.06.2011 Mortgage deed A4 22.06.2011 Hypothecation A5 21.01.2014 Notice A6

Statement of Accounts A7

Certificate as per the Banker’s book of evidence A8 09.04.2013 Balance confirmation

Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

Sd/ (T. RAJESH) PRESIDING OFFICER